All the necessary licenses including the environmental clearance and petroleum exploration license has been obtained. Prashant Modi, President and CEO, GE said, “We are waiting for a few minor procedural approvals from the State Government. Once that is done, we hope to start drilling by December.”

The Directorate-General of Hydrocarbons, believes that the estimated gas in place at the Mannargudi block is 0.98 trillion cubic feet (TCF).

In the exploration phase, the company will create 30 pilot production wells to assess the feasibility and quality of the geology namely the coal, lignite and gas content. Based on the results, the company plans to set up 50 core wells for commercial production. “It could take a few years for commercial supply,” said Modi.

The company already operates 128 wells at Raniganj, West Bengal, producing 11.2 million cubic feet per day of compressed natural gas (CNG).